Evaluating economics of a 6-plex construction in SE Houston

[Mohammed S.]

Hi all,  

I am interested in constructing a 6 plex, class C apartment in Houston in place of the house that currently stands on the lot. The contractor has given a bid for 630 K for a turn key (including the development of a retention pond). Each unit will likely fetch 1200 in monthly rent. I figure the payback is a 10 year period. Is that the right way to determine the feasibility of the project? Please advise

Thank you, Mo